ECONOMYNEXT – Sri Lankan are asked to stay at home from midnight on June 27 until July 10 cabinet spokesman Minister Bandula Gunewardena said as the Indian Ocean island ran out of fuel in worst currency crisis in history of its soft-pegged central bank.
The cabinet of ministers had decided that fuel will only be issued to essential services like the port, health, food distribution, agricultural transport services from midnight June 27.
“All other sectors are requested to stay at home and provide services online and help in this difficult time,” Minister Gunewardene said.
“If not we will not be able to distribute the limited stocks to essential services.”
Sri Lanka is expecting to have a better supply of fuel from July 10, Minister Gunewardena said without explaining details.
State bus companies will provide short distance services.
“Inter-provincial transport will most likely stop,” he said. “We expect private companies in export and tourism will continue to provide un-interrupted services.”
Sri Lanka is suffering severe forex shortages and a high inflation after two years of money printing to mis-target interest rates.
An attempt float with a surrender required led to a collapse of the currency from 200 to 370 to the US dollar.
The central bank however has continued to print money to control interest rate and is also imposing a non-credible peg at 360 to the US dollar.